On the 24th, U.S. Treasury Secretary Timothy Geithner stated that as the economic situation improves, the United States is dedicated to reducing its deficit to a manageable level.
Geithner made these remarks during the second round of the U.S.-China Strategic and Economic Dialogue. He mentioned that President Obama has developed a detailed and comprehensive plan aiming to cut the share of the fiscal deficit relative to Gross Domestic Product by more than half over the next few years.
In response to the financial and economic crisis, the U.S. government launched a series of massive economic stimulus plans, leading to a fiscal deficit of up to $1.4 trillion in 2009, which was approximately 10% of its Gross Domestic Product. The White House projects that this year's deficit could further increase to about $1.6 trillion.
Geithner stated that the economic stimulus programs implemented by the Obama administration regarding investment, taxation, and finance have stabilized the economic system, resulting in growth in the U.S. economy.
He also praised China's economic stimulus plan, acknowledging that China effectively expanded domestic demand while maintaining economic growth, achieving a transformation in its growth model.
According to Geithner, the commitments to cooperation between the U.S. and China have demonstrated their capacity for close collaboration in addressing today's greatest challenges to the world economy. He believes that due to the actions taken by both countries over the past year, the world economy is considerably stronger than it was a year ago. The U.S. and China will continue to jointly tackle the challenges of economic recovery, "ensuring that the world economy emerges from the crisis and laying the foundation for strong, sustainable, and balanced growth worldwide."
The two-day second round of the U.S.-China Strategic and Economic Dialogue commenced on the morning of the 24th in Beijing. Vice Premier Wang Qishan and State Councilor Dai Bingguo, as special representatives of President Hu Jintao, co-chaired the dialogue with U.S. President Obama's special representatives, Secretary of State Hillary Clinton and Treasury Secretary Timothy Geithner. It is reported that nearly 50 leaders from over 40 departments of both countries participated in the dialogue.
